Biz Watch

MICHAEL URBAN/AFP-GETTY IMAGES

Will Schröder's Christmas story have a happy ending?

Santa's Mixed Bag of Reforms
When Gerhard Schröder's government reached agreement with the opposition Christian Democrats on a package of long-awaited economic reforms in mid-December, you might have expected German businesses to leap with Christmas joy. But despite lowered nonwage costs for employers, they're not all happy. Why?

To help pay for a €7.8 billion tax cut, the compromise reduced federal subsidies to new home buyers (by 30%) and commuters who drive to work. "Business will go down, but we're not sure by how much," said Mario Wanke, who owns a home-construction company in Neubrandenburg ....

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!